Health insurance covers the cost of medical care when you or your family is admitted to the hospital. Health Insurance is one of the most important aspects of sound financial health. And if you do not have health insurance yet, you should buy one after reading this chapter. But remember,
“never purchase a scheme without deliberate analysis.”
Compare various plans and find one that suits you and your family. Often people who have bought health insurance policies without homework find out that they have purchased a policy unsuitable for them and their families.
Importance of Health Insurance;
Verifiable reports state that only 30% of the Indian population has health insurance. This is alarming.
Do you have one? If not, have you ever thought about how you will bear the cost of medicines and surgeries if you or any of your family members suddenly need one? If you don't have health insurance, it will cost you heavily, and you may be forced to surrender your fixed deposits, sell mutual funds, or sell your other assets to bear the cost of treatment.
The rising cost of medical treatments is another area of concern. Being admitted for a couple of days and the hospital room rent will eat into your money. Factor in the cost of medicines, surgeries, doctor fees, and other miscellaneous expenses, and you can kiss your saving bye. We often only understand the value of things when we need them desperately.
Having health insurance not only helps you protect yourself from derailing from your financial plan but also helps you to get good treatment in a good hospital. We can avail the best doctors for our treatments with a good health insurance plan. Another great thing about having health insurance is getting the best value for our money. Getting treatment through health insurance can afford you the best treatment at the most affordable rate.
So, who should purchase a health insurance plan?
Any person who has dependents should purchase health insurance. Often, people who work in organizations get health insurance from their employers. But what if your next job does not provide health insurance? Also, some companies don't offer health insurance that covers their staff’s relatives. So, it is always better to buy health insurance separately whether or not your employer offers it. It will be a big relief in case of any medical emergencies.
One of my employers provided staff with a family floater health insurance plan that covered dependent parents. When I changed jobs, my new employer had no health insurance policy. I was shocked when I found out. I immediately bought a family floater health insurance plan. And when I again changed my job, my new employer had a health insurance policy for all the employees covering the employee and all his dependents. Yet again, another employer had a health insurance policy for employees, their spouses, and two dependent children but did not cover the parents.
So, purchasing a separate policy covering all your family members will benefit you in the long run. I have been continuously renewing my policy since 2012.
A report by Statista based on a survey of 5,922 respondents revealed that 39% of full-time employees had health insurance through their work, while only 14% had private health insurance.
So, if you often the change jobs then having a health insurance policy covering all your family members including your parents or in laws will be better.
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What Should You Know About Health Insurance Plans?
You must look up some important things before buying health insurance. You should also consider seeking a professional if you have no idea about health insurance coverage. But some of the most common things you should look out for in insurance cover are:
1. Is a health checkup required or not?
2. Is it with copay or without copay?
3. What are the diseases covered in it, and for the diseases not covered, how many months or years will they be covered if we successfully renew the policy? Always compare the various health insurance policies to choose the best which suits your needs. You can quickly get help from Policybazaar, Coverfox, or similar other online platforms; they can help you choose as per your needs.
4. Am I eligible for Ayushman Bharat Pradhan Mantri Jan Arogya Yojana?
You can check it by visiting the link: https://mera.pmjay.gov.in/search/login
Below are a few more things to take note of
1. Always provide complete and accurate details about you and your family's diseases and medical conditions while purchasing a health insurance plan. Any information you deliberately or carelessly refuse to divulge will do you more harm than good.
2. IRDA is the regulatory body of all insurance firms, so if you think your grievance is not satisfactorily addressed, you can approach IRDA and raise your complaints. You can submit your complaints at https://bimabharosa.irdai.gov.in/.
3. You can visit the insurance provider's website if you need to know more about any health insurance product. Also, visit the IRDA website to learn the latest rules and guidelines enforced by IRDA. This will keep you updated.
4. Note down and put in a safe place all the essential contact details of health insurance so that you don't panic in an emergency. You can also have contact details of network hospitals in your area so that you can contact them in case of an emergency.
Conclusion
Financial planning is only complete with health insurance. And if you have planned other things well, but Health Insurance still needs to be included, then you're half done. So, get health insurance now to protect your wealth.
This article is one of the excerpts of my book" 60 Minutes Guide to Building Wealth: All the Mistakes You Should Avoid, And Things You Must Know and Follow